Change in policy stance looks imminent

The Reserve Bank of India (RBI) will almost certainly keep the repo rate on hold at 6.50% at the conclusion of its MPC meeting on Friday, 7th June. But we think that the committee will lay the foundation for policy easing by officially changing its policy stance. We think the easing cycle will begin in August and we expect slightly more rate cuts by the end of the year than the consensus is forecasting.

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